More than 200,000 of Bank of America’s employees just got word that they’ll receive a nice little bonus next month. The company’s CEO, Brian Moynihan, sent out a memo stating that U.S. workers who make less than $100,000 a year will receive $750 in cash, while higher tier employees who earn from $100,000 to $500,000 will get 150 to 750 units of restricted stock awards. The stock bonuses will be paid out over time, beginning next year and will continue for four years. The value of the stocks will depend on Bank of America’s share prices at vesting time. On Friday, share prices stood at $31.50 per share.
Bank of America was one of the first banks to shift to a minimum wage of $20. That took effect in April 2020 under Moynihan’s leadership. Moynihan has been at Bank of America’s helm since 2010.
Moynihan alluded that the bonuses are being paid out to support its workers’ dedication during the pandemic.
“Our company and teammates were called upon to address unprecedented challenges and headwinds in the broader environment, working in support of each other, our clients, and the communities where we work and live,” Moynihan noted. “In appreciation for your outstanding efforts, the management team and I, with the support of our board of directors, have decided to recognize employees.”
The latest financial rewards aren’t the first time Moynihan has shown appreciation to his employees. In 2017, the bank started handing out $1,000 cash rewards to its workers. The bonuses were meant to be a yearly effort, but once the COVID-19 pandemic took hold, it was paused due to loan defaults precipitated by the virus. Bank of America’s profits fell by 35 percent in 2020 due to loan losses.
But, the bank still managed to uphold its $20 minimum wage pledge in April of last year, a full year ahead of time. Bank of America has also reimbursed its employees $300 million in childcare-related costs during the coronavirus outbreak.
Moynihan conveyed to its employees in the note, “This move is the next step our company is taking to significantly invest in health, safety, benefits, and other resources to support you during this global health and humanitarian crisis.”